This is a narration of Radix's weekly Rent and Operating Trends Report. The U.S. economy continues to search for signs of optimism in the face of significant headwinds as we move into the third quarter. Persistent inflation has led to a swift tightening of monetary policy which has increased recession predictions from leading economists. While the short end of the treasury yield curve is increasing, yields on the long end of the curve have fallen since the last Fed meeting. The 10-year treasury rate fell below 3% last week after reaching as high as 3.5% in early June. This may be a welcome sight for borrowers looking for loans tied to the 10-year as many single-family and multifamily loans are, however, 10-year yields are falling as a result of a more pessimistic future outlook for the macroeconomy. As of July 11th, the yield curve was inverted, as the yields on one- and two-year treasuries were higher than the 10-year treasury. A yield curve inversion is often a precursor to a recession. Tune in to find out more information on multifamily dynamics during the week of July 10.
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